Financial Update by Maurice Soussé

Interest rates remain flat today as the 10 year treasury remains at record lows. The mortgage back securities are quite low while the 10 year treasury hovers at 1.5%.

The deal of the week is classic. We are financing a second home in Mammoth, California. The property is a nice condo that is simple in nature and the loan was declined as the underwriter said the property was a condo-tel. The appraiser listed that the property is in a “four seasons resort” and the bank immediately said they cannot lend on condo-tels. The underwriter thought that the appraiser meant the property is in a “Four Seasons Resort” (meaning a Four Seasons Hotel Resort). These are the types of challenges that arise in today’s lending and you can imagine they can be a tad frustrating for all.

Luckily our relationships that we continue to cultivate help us to get these types of declines overturned and approved. We have personal relationships with the national head of underwriting with over 10 lending partners. We recognize the importance of these relationships and value our partner’s ability to help us in times of need.

Epictetus said First say to yourself what you would be; and then do what you have to do.

Have a blessed weekend.